OTCPK:NNDIF - Post by User
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galvanizedon Jul 27, 2022 12:39am
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Post# 34852910
so much to talk about, hard to know were to begin: Inventory
so much to talk about, hard to know were to begin: InventoryOk then, lets talk about concentrate inventory.... So yes, if you look at the balance sheet, the value of the concentrate inventory is rather high. And although some might attribute it to some sort of Glencore plot, in my opinion it is more likely the result of the failure to process as much concentrate as expected during Q1 and Q2. So, the "correct" amount of inventory to keep on hand is a classic business problem that any commerce student should know about. It is a balance between the cost of carrying inventory verus the cost of running out. In the case of a zinc smelter, the cost of running out of concentrate inventory would be rather horrific, and so, one would expect management to ensure a supply at all times. In the case of zinc concentrate, and, especially sea bourne zinc concentrate, I would think that planning for deliverys occurrs many months in advance of the actual delivery.
TOMORROW: Free Metal...